TIFs & RIDs


Most properties are not in a TIF or RID district. If you are in a RID district, you will have a second parcel that ends in the letter "R". If you are in a TIF district, you will have a second parcel that ends in the letter "T". In order to see the 100% market value of the property, you must add the value of the two parcels together.

RID (Residential Incentive District) 

A RID is legislation enacted by an entity to help pay for public improvements. The entity chooses to divert a portion of tax the taxpayer is already earmarked to pay, for a determined period of time (usually 30 years). Each taxing authority agrees to give up their portion of the RID money for this period of time. 

At the time the RID is enacted, the value of the parcel is locked. Those taxes against the locked value are calculated, billed, and distributed to the county, township, schools, etc. in the normal fashion. Any increase in the value from that point on is put on the "R" parcel. The taxes are calculated against the value and assigned to the base parcel as a special assessment. 

TIF (Tax Increment Financing) 

A TIF is set up in a similar fashion to a RID but is used in public improvements for commercial developments. An example of an area created using a TIF funding is Union Centre Boulevard in West Chester Township.